Many with small businesses have discovered a steep decline in their earnings post-lockdown due to various reasons, though struggling, all remain hopeful for schemes to bail them out of the crisis
The Pachkales live at Flower Chawl at Seven Bungalows and depend on their snack centre for survival. Pic/Satej Shinde
When the COVID-19 pandemic choked people’s sources of income last year, scores headed for their hometown. Most have returned, but it’s no longer business as usual. Earnings have plunged not only for such people, but also for city residents running established businesses for years. On the eve of the Union Budget, mid-day speaks to Mumbaikars from various walks of life.
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‘Remove surcharges on movie tickets’
Pappu Lekhraj
Pappu Lekhraj, who supplies junior artistes for big-budget films, said, “As income has been minuscule over the past year and we have had to pay daily wagers, taxes should be waived for the industry at large. Though theatres will be operating at 100 per cent occupancy, we need to give people the impetus to walk in. The surcharges on movie tickets should be removed to encourage people to go to theatres. We invest in daily wagers, who are paid regularly because their amounts are small and they don’t work on a project for more than 10-12 days a month. We pay 2 per cent TDS, but an additional 30 per cent tax on profits. Our payments come after 90 days but our GST payments have to go out every month. We’ve barely made any money the past year. Junior artistes and daily wagers don’t come under the purview of tax returns because they barely make Rs 15,000 per month.”
‘Expecting I-T relief’
Saalim Khan
Thirty-year-old Saalim Khan, a resident of Lokhandwala Complex, Andheri West, runs a laundry, White Magic, in the market. He said, “Before the lockdown was announced, we would make anywhere between R70,000-R80,000 per month, but the earnings have gone down to R30,000-R40,000. We have had to cut down on expenses related to cleaning and chai-paani. We usually buy two cycles every year for delivery of clothes, but last year we couldn’t even afford one. As of now, we are functioning with just four staff members.” Khan added, “As a small businessman, I expect some income tax relief or monetary relief as we suffered losses in the past one year. The GST and other taxes are very high. There needs to be some GST relief so that we can save money.”
‘Customers scared, iron own clothes’
Vijay Kanojia (L) runs his laundry from a one-room flat that is also home to his family of six. Pic/Satej Shinde
Originally from Jaunpur in Uttar Pradesh, Vijay Kanojia along with an uncle runs a laundry service from a one-room flat in a bylane of Versova village. Over the past 10 years, his monthly income had slowly risen to Rs 20,000 to Rs 25,000, providing subsistence to his family of six, including two children. His biggest chunk of expenses was the R10,000 rent for the flat that is also his home in the city. Business came to a grinding halt after the Coronavirus brought along a crippling, nationwide lockdown. Kanojia said he had a decent base of customers, but none came to his shop. “Managing the monthly expenses with zero income was not possible. We somehow arranged for a vehicle and left for our village. I was confident my brothers would help us during the crisis and we won’t go hungry there,” he told mid-day. After the lockdown was relaxed, Kanojia returned to Mumbai in October, only to be overwhelmed by a new kind of uncertainty. “Even after resuming the laundry service, I barely earn enough to eke out a living. A lot of my customers are still scared of the virus and they prefer ironing their clothes by themselves.” Today, Kanojia earns less than half of what he used to make a year ago. “The government should help people with small businesses. Rent apart, I also have to take care of the power bill, food, and school fees will get added to it soon. Millions like me have suffered during the pandemic and hope the Budget will bring in some cheers for us.”
'10,000
Kanojia’s monthly income post-lockdown
‘Facing never-before tests; need flat, fair GST rate to facilitate biz’
Haresh Hathiramani at his shop, Khazana Boutique, at Colaba Causeway
Haresh Hathiramani, entrepreneur-owner of garment retail boutique called Khazana on the Colaba Causeway - so replete with retail that it is dubbed as Causeway shopping — claimed, “I have never before experienced challenges of this magnitude in my 37 years at this store. I took over from my dad who started Khazana Boutique, the garment outlet in 1947.” The Causeway’s big spenders, the tourists, which were the boulevard’s lifeblood, have dried up. This means, said Hathiramani, “Locals at shops are driving such hard bargains that it is insulting. They are milking the situation. They offer R500 for a Rs 2,000 outfit.” Hathiramani, 55, added, “I am working as hard physically as I was at 19 years old. My staff of three migrated in the lockdown and stayed in their hometowns. At home, it has been goodbye to eating out at restaurants that we used to do occasionally,” said Hathiramani, “Or putting off some buy like expensive shoes, perhaps. It is about keeping finances for seniors, if needed, for medical expenses.” The Khazana boutique owner summed up, “‘Make in India’ is hurting because production costs are skyrocketing. The budget needs to factor in too that Goods and Services Tax (GST) if (the product is) below Rs 1,000 fetches five per cent and if it is above Rs 1,000, it is 12 per cent. We need one flat, reasonable rate to help facilitate business.”
‘Cost of raw material rising, improvement in income unlikely’
In his three decades of running a snack centre at Seven Bungalows, Babaji Pachkale had never imagined he would be forced lock his shop and move to his native Ratnagiri. He lives in a joint family with wife Ranjana and son Hitendra at a chawl in the vicinity. The other members also work at his shop and depend on it for survival. “All of us went to our hometown on the second day of the lockdown as it didn’t make any sense staying in Mumbai without the business. We came back after Ganpati and reopened the shop, but the business is crawling. With the rising cost of raw material, it is unlikely there will be any improvement in income anytime soon,” he told mid-day. Hitendra said they used to earn between Rs 35,000 and Rs 40,000 before the Coronavirus outbreak. “As we didn’t have any source of income in the village, we ended up spending close to Rs 1 lakh during our stay there for five to six months. After we exhausted our savings, we had to return.” The income has become half, said Hitendra, and added, “Inflation is a huge concern as everything has become expensive. The number of customers have gone down as people avoid eating outside. I am apprehensive about the fate of people like us. Only the government can give a ray of hope by bringing in some packages to improve the situation.”
'40,000
Pachkale’s earning before the outbreak
- Mohar Basu, Gaurav Sarkar, Ranjeet Jadhav, Hemal Ashar
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